In Re SK HYNIX INC. ( 2021 )


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  • Case: 21-113    Document: 10     Page: 1    Filed: 02/01/2021
    NOTE: This order is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    In re: SK HYNIX INC., SK HYNIX AMERICA INC.,
    Petitioners
    ______________________
    2021-113
    ______________________
    On Petition for Writ of Mandamus to the United States
    District Court for the Western District of Texas in No. 6:20-
    cv-194-ADA, Judge Alan D. Albright.
    ______________________
    ON PETITION
    ______________________
    Before NEWMAN, MOORE, and STOLL, Circuit Judges.
    MOORE, Circuit Judge.
    ORDER
    SK hynix Inc. and SK hynix America Inc. (collectively,
    “SK hynix”) petition for a writ of mandamus directing the
    United States District Court for the Western District of
    Texas to transfer the underlying case to the United States
    District Court for the Central District of California, or al-
    ternatively, directing the Western District of Texas to stay
    the proceedings and to rule on SK hynix’s pending motion
    to transfer. Netlist, Inc. opposes the petition.
    Netlist filed this patent infringement suit against SK
    hynix in March 2020. On May 4, 2020, SK hynix moved to
    Case: 21-113    Document: 10      Page: 2     Filed: 02/01/2021
    2                                           IN RE: SK HYNIX INC.
    transfer the case. The district court received Netlist’s re-
    sponse on May 18, 2020 and SK hynix’s reply on May 26,
    2020 but has yet to rule. Meanwhile, the trial judge has
    ordered the parties to engage in extensive discovery and
    has scheduled a Markman hearing for March 19, 2021. On
    December 15, 2020, SK hynix moved to stay proceedings
    pending disposition of its transfer motion, but, on January
    6, 2021, the court informed the parties of its policy “to pro-
    ceed with all deadlines while [it] resolves the jurisdictional
    issues in parallel.” Appx0570. SK hynix then filed this pe-
    tition. On January 27, 2021, this court directed Netlist to
    respond by February 1, 2021. On January 28, 2021, the
    district court issued an order setting a hearing on the
    transfer motion for the morning of February 2, 2021.
    Applying the law of the United States Court of Appeals
    for the Fifth Circuit in cases arising from district courts in
    that circuit, this court has held that mandamus may be
    used to correct a patently erroneous denial of transfer or
    an arbitrary refusal to act on such request. See, e.g., In re
    Microsoft Corp., 
    630 F.3d 1361
    , 1363 (Fed. Cir. 2011); In re
    Nintendo, Ltd., 
    589 F.3d 1194
    , 1201 (Fed. Cir. 2009); In re
    Genentech Inc., 
    566 F.3d 1338
    , 1348 (Fed. Cir. 2009); In re
    Google, No. 2015-138, 
    2015 WL 5294800
     (Fed. Cir. Jul. 16,
    2015). That standard is an exacting one, requiring the pe-
    titioner to establish that (1) it has a clear and indisputable
    legal right to relief; (2) does not have any other method of
    obtaining the relief requested; and (3) that the writ is ap-
    propriate under the circumstances. Cheney v. U.S. Dist.
    Court for D.C., 
    542 U.S. 367
    , 380–81 (2004).
    We agree with SK hynix that the district court’s han-
    dling of the transfer motion up until this point in the case
    has amounted to egregious delay and blatant disregard for
    precedent. As we recently reiterated, “[a]lthough district
    courts have discretion as to how to handle their dockets,
    once a party files a transfer motion, disposing of that mo-
    tion should unquestionably take top priority.” In re Apple
    Inc., 
    979 F.3d 1332
    , 1337 (Fed. Cir. 2020) (citations
    Case: 21-113     Document: 10      Page: 3    Filed: 02/01/2021
    IN RE: SK HYNIX INC.                                               3
    omitted); see also In re Horseshoe Entm’t, 
    337 F.3d 429
    , 433
    (5th Cir. 2003) (“[I]n our view disposition of that [transfer]
    motion should have taken a top priority in the handling of
    this case by the . . . District Court.”). No such priority was
    given to the motion here, as it simply lingered unneces-
    sarily on the docket while the district court required the
    parties to proceed ahead with the merits.
    In light of the fact that the district court has now sched-
    uled a hearing on the motion and is presumably proceeding
    toward a resolution of the transfer issue, we are not pre-
    pared to say that a writ of mandamus to compel the court
    to act on the motion would be necessary or appropriate at
    this juncture. Nor can we say that SK hynix has no alter-
    native avenue to obtain meaningful relief on its request to
    transfer the case, as we fully expect that the district court
    will expeditiously rule on its motion. However, given the
    lengthy delay and upcoming Markman hearing, we find it
    appropriate to grant the petition to the extent that the dis-
    trict court must stay all proceedings concerning the sub-
    stantive issues of the case and all discovery until such time
    that it has issued a ruling on the motion capable of provid-
    ing meaningful appellate review of the reasons for its deci-
    sion. See In re Lloyd’s Register N. Am., Inc., 
    780 F.3d 283
    ,
    290 (5th Cir. 2015). Precedent compels entitlement to such
    relief and the district court’s continued refusal to give pri-
    ority to deciding the transfer issues demonstrates that SK
    hynix has no alternative means by which to obtain it.
    Accordingly,
    IT IS ORDERED THAT:
    The petition is granted to the extent that the district
    court must stay all proceedings concerning the substantive
    issues in the case until such time that it has issued a ruling
    on the transfer motion capable of providing meaningful ap-
    pellate review of the reasons for its decision. The parties
    shall inform the court when the district court has issued
    such an opinion.
    Case: 21-113   Document: 10   Page: 4     Filed: 02/01/2021
    4                                       IN RE: SK HYNIX INC.
    FOR THE COURT
    February 01, 2021       /s/ Peter R. Marksteiner
    Date               Peter R. Marksteiner
    Clerk of Court
    s29